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Washington Federation Fights Corporate Tax Breaks

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The Washington Federation of Teachers and other citizen groups are fighting state officials' efforts to extend tax breaks for big businesses. Questioning whether the breaks, which have been in place for 10 years, have delivered as promised for the state economy, they assert that the money would be better invested in education and other social services.

"Washington state is facing a funding and access crisis in higher education," says Sandra Schroeder, president of the Washington Federation of Teachers (WFT). "There are too many students and not enough faculty, and the government refuses to improve the situation for ideological reasons."

The governor has pledged to sign legislation that would extend tax breaks to high-tech research and development firms. The $74 million plan is a renewal of a 10-year-old incentive package, which amounts to revenue lost that could otherwise be put to good use. 

Schroeder and 30 others showed up at Gov. Locke’s State of the State address Jan.13 to voice their concerns about renewing a big giveaway to wealthy corporations.  The WFT estimates that exemptions will cost Washington $90 million for the rest of the biennium, and $257 million in the next.

Testifying before the state Senate Ways and Means Committee just days after the rally, Schroeder explained that higher education institutions are underfunded, and that, like businesses, they must remain competitive, if they are to attract faculty, students and grants.  Schroeder indicated at the hearing that the money from the tax break could be put to better use. 

"You always say ‘Show us the money.’  Here is the money." That money, Schroeder argued, could be invested in higher education instead of relying on a voucher system for students to attend private colleges, and implementing performance contracts. 

Schroeder and the WFT also want to reinstate cost-of-living increases that were approved two years ago for faculty at two-year and four-year institutions alike, a benefit that was axed in last year’s budget.  [Brian Dolber]

[February 19, 2004]

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